My account value reaches $600,000 for the first time; launching incubator hedge fund

[Free Thinker]

Quote from lazar206:

I started my account in the end of 2008; total paid into account is 225k. Last week it touched $600,000 for the first time.

you were lucky to start at the beginning of the greatest bull in history. the old saying is dont confuse brains for a bull market. just asking. dont know. do you think you have the skills to play anything but an up market?

 

[Cache Landing]

Quote from Free Thinker:

you were lucky to start at the beginning of the greatest bull in history. the old saying is dont confuse brains for a bull market. just asking. dont know. do you think you have the skills to play anything but an up market?

Should be easy enough to notice correlation to the broader market. Anything higher than about 50% correlation and his performance is simply average. OTOH, 20% correlation and it is respectable, but still not abnormal.

 

[Cache Landing]

Quote from Rodney King:

Not sure what you mean by "incubator hedge fund," but the costs of establishing and maintaining a full-blown offshore fund rule out an account value such as $100,000. You could easily spend that your first year.

Incubator fund will cost about $3,000 to setup and doesn't carry any of the maintenance costs.

Certainly, your $100K first year cost statement is a slight exaggeration though. More in the $50K range is realistic.

-$25K fund setup
-$10K audit
-$5K tax prep
-$10K administrative

But your point is well taken. With only 60% annual returns, he'll need 500K AUM just to break even after costs, running a one-man operation. A fair stress test would take market correlation into account and after that he might discover that he's really looking at $2MM minimum to launch the full blown fund.

 

[Zr1Trader]

Quote from atticus:

Work on achieving profitability before offering advice.

I was using those figures as a situational example not as factual figures. Work on reading comprehension before trying to belittle others.

 

[cstfx]

Quote from Rodney King:

Not sure what you mean by "incubator hedge fund," ...

http://www.google.com/search?rlz=1C...urceid=chrome&ie=UTF-8&q=incubator+hedge+fund

 

[atticus]

Quote from Zr1Trader:

I was using those figures as a situational example not as factual figures. Work on reading comprehension before trying to belittle others.

Your syllogism is false. Not remotely referring to your numerical examples.

 

[Rodney King]

Quote from cstfx:

http://www.google.com/search?q=incubator+hedge+fund

Uhh, those structures can't accept <i>clients</i>... there's no "fund" in an "incubator hedge fund."

 

[lazar206]

Quote from heech:

Good luck to you. One reminder: If you truly plan to launch a "fund", advertising returns publicly this way would put you in violation of SEC Reg D for private offerings. (And/or NFA rules on disclosing results to prospective customers).

Let me just clarify, the purpose of this thread is NOT about advertising or solicitation, in fact I have no interest now in managing money for people I don’t know. The purpose of this thread is to share performance and at times strategy, and get comments and insight from industry professionals.

Now regarding SEC Reg D, I have discussed it with my attorney last month, and he advised me that there is no problem in posting performances on a forum, “especially” if you are not publicizing the name of the fund and the name of the manager. If your interpretation of the law is different, let me know.

 

[lazar206]

Quote from risky63:

you should just stick to makin 200%/ year.
in 5 years you won"t be able to spend it all.
why deal with all the paperwork and headaches.
just post your strategy so all your fellow et"ers can retire with you......please.

It was actually 170% in “2 years”. And I am not sure I could repeat it every 2 years…..

 

[intradaybill]

Quote from lazar206:

Let me just clarify, the purpose of this thread is NOT about advertising or solicitation, in fact I have no interest now in managing money for people I don’t know. The purpose of this thread is to share performance and at times strategy, and get comments and insight from industry professionals.

I think this is the purpose of this forum. I have a few questions:

- What was your Sharpe Ratio?

- Profit factor?

- Win rate?

- max DD?

If you are willing to do so, you can attach a list of your trade returns and I will run statistics that tell whether your returns were achieved by luck or skill. I can do that privately if you wish so. I do it out of curiocity and for fun.